SFX Entertainment Considers Filing for Bankruptcy
SFX Entertainment, Inc. - responsible for such events as Tomorrowland and Electric Zoo - announced yesterday that it may be filing for bankruptcy. According to Nasdaq, the live events promoter has $312.6 million in debt when the most recent earnings report (Sept. 30) showed the company to have less than 19 percent of that in cash.
After receiving a waiver on defaults Dec. 31 of $30 million through the end of January, the EDM empire led by Robert F.X. Sillerman reports that it has called upon a restructuring firm to consider options that would help with its worsening debt troubles, including a bankruptcy filing.
"In connection with its obligations under the Forbearance and Amendment Agreement, the Company has retained financial advisory firm FTI Consulting, Inc. ('FTI') to serve as the Company’s Chief Restructuring Officer. FTI will assist the Company in evaluating and assessing various restructuring and strategic alternatives, including working with management to analyze and optimize operations and financial performance. There can be no assurance that the Company will be successful in identifying or implementing, on favorable terms or at all, any financial or strategic alternatives, which may include restructuring the Company’s debt, the issuance of additional equity or debt, or the sale of some or all of the Company’s assets. In order to facilitate its reorganization, the Company may consider utilizing the available protections under the federal bankruptcy laws."
The announcement that the company may not be able to keep up with its debt in 2016 comes after Sillerman unsuccessfully tried to take the company private last year and faced a class action lawsuit from unhappy investors.
I'm a storyteller at heart, and music makes my world go round.